Fednav strives to stay ahead with next phase of newbuilds

Canadian bulker owner joins forces with Japanese shipyards to develop 'generation four' vessels

Fednav wants to be “a step ahead” of its rivals, so chief executive Paul Pathy and his team have been busy working on the Canadian bulker company's strategic developments.

“It’s a fancy way of saying what we are going to do over the next few years,” he says. “Our focus is on the fleet ... how we are going to renew it.

“If we want to grow, we must find a way to do things better — do something that someone else is not doing, or do it better.”

Fednav is taking the initiative by developing the next generation of ships for its fleet growth.

“We have not ordered any newbuildings this year," Pathy says. "We are still taking delivery of the ones that we ordered in the past couple of years. Our fleet in general is more efficient than our competitors.”

Fleet renewal

The company took advantage of the low-priced shipbuilding market over the past few years to renew its fleet. It ordered more than 20 vessels in Japan, and most of the ships were booked at its favourite yard, Oshima Shipbuilding.

“We are already working with Oshima and other shipyards to develop the 'next generation' of ships even before the 'generation three' are delivered,” Pathy says. “We already have the design of the 'generation four' ships — an optimisation of both cargo lift, fuel efficiency and technology.”

Besides channelling its focus towards building a more efficient fleet, Fednav is also looking for a vice president of technology and digital transformation. It has seen the shift towards digitalisation and technology, and recognised the impact this has on shipping.

"Like a lot of people, we are hiring and we are looking at various partnerships to look at analytics, to make a push on technology. We’ve got to find a way to compete against bigger and global operators, and the quality ones"

Paul Pathy

“Like a lot of people, we are hiring and we are looking at various partnerships to look at analytics, to make a push on technology,” Pathy says. “We've got to find a way to compete against bigger and global operators, and the quality ones.”

Lakes-fitted leader

Fednav is a leading operator in the international trade involving lakes-fitted bulkers, as well as in the Canadian Arctic.

It controls more than 100 vessels, of which 63 are owned. Over the next three years, it is slated to take delivery of seven handysize bulkers — six from Oshima and one from Japan Marine United.

Atlantic Basin becomes Fednav’s focus for Great Lakes dry bulk fleet

“We have increased a lot in our owned fleet as we have the resources to do that," Pathy says. "For the coming years, we will see what options are available to us.

"We want to be in a position that we can make a choice. If I need a ship, I will go and buy one. But if I can charter quality vessels, that is fine too. Whether it is owned or not is not so important.”

Fednav prefers Japanese-built vessels as Japan's shipbuilders are widely credited with building the world’s best-quality units.

China not ruled out

When asked if Fednav would consider having its vessels built by rising shipbuilding nations such as China, the executive says it would if opportunities arise.

“Anyone who thinks openly about their business has to always consider all options out there," Pathy says. "So, it would be short-sighted of me to use the word 'never' on Chinese or Sino-Japanese shipyards. We have to keep our options and consider what is the best way to compete.

“If next year or 10 years from now, they [Chinese or Sino-Japanese shipbuilders] make a push to be better, we have to consider that.”

But Pathy says Japanese shipbuilders are aware of this as well.

“They don’t expect their clients to buy Japanese ships if quality and price differences are not there,” he says. “I prefer to put pressure on our Japanese partners and work with them to make sure they stay ahead. I think they can do it.”

Fednav strives to stay ahead with next phase of newbuilds

Fednav strives to stay ahead with next phase of newbuilds

Canadian bulker owner joins forces with Japanese shipyards to develop 'generation four' vessels

Fednav wants to be “a step ahead” of its rivals, so chief executive Paul Pathy and his team have been busy working on the Canadian bulker company's strategic developments.

“It’s a fancy way of saying what we are going to do over the next few years,” he says. “Our focus is on the fleet ... how we are going to renew it.

“If we want to grow, we must find a way to do things better — do something that someone else is not doing, or do it better.”

Fednav is taking the initiative by developing the next generation of ships for its fleet growth.

“We have not ordered any newbuildings this year," Pathy says. "We are still taking delivery of the ones that we ordered in the past couple of years. Our fleet in general is more efficient than our competitors.”

Fleet renewal

The company took advantage of the low-priced shipbuilding market over the past few years to renew its fleet. It ordered more than 20 vessels in Japan, and most of the ships were booked at its favourite yard, Oshima Shipbuilding.

“We are already working with Oshima and other shipyards to develop the 'next generation' of ships even before the 'generation three' are delivered,” Pathy says. “We already have the design of the 'generation four' ships — an optimisation of both cargo lift, fuel efficiency and technology.”

Besides channelling its focus towards building a more efficient fleet, Fednav is also looking for a vice president of technology and digital transformation. It has seen the shift towards digitalisation and technology, and recognised the impact this has on shipping.

"Like a lot of people, we are hiring and we are looking at various partnerships to look at analytics, to make a push on technology. We’ve got to find a way to compete against bigger and global operators, and the quality ones"

Paul Pathy

“Like a lot of people, we are hiring and we are looking at various partnerships to look at analytics, to make a push on technology,” Pathy says. “We've got to find a way to compete against bigger and global operators, and the quality ones.”

Lakes-fitted leader

Fednav is a leading operator in the international trade involving lakes-fitted bulkers, as well as in the Canadian Arctic.

It controls more than 100 vessels, of which 63 are owned. Over the next three years, it is slated to take delivery of seven handysize bulkers — six from Oshima and one from Japan Marine United.

Atlantic Basin becomes Fednav’s focus for Great Lakes dry bulk fleet

“We have increased a lot in our owned fleet as we have the resources to do that," Pathy says. "For the coming years, we will see what options are available to us.

"We want to be in a position that we can make a choice. If I need a ship, I will go and buy one. But if I can charter quality vessels, that is fine too. Whether it is owned or not is not so important.”

Fednav prefers Japanese-built vessels as Japan's shipbuilders are widely credited with building the world’s best-quality units.

China not ruled out

When asked if Fednav would consider having its vessels built by rising shipbuilding nations such as China, the executive says it would if opportunities arise.

“Anyone who thinks openly about their business has to always consider all options out there," Pathy says. "So, it would be short-sighted of me to use the word 'never' on Chinese or Sino-Japanese shipyards. We have to keep our options and consider what is the best way to compete.

“If next year or 10 years from now, they [Chinese or Sino-Japanese shipbuilders] make a push to be better, we have to consider that.”

But Pathy says Japanese shipbuilders are aware of this as well.

“They don’t expect their clients to buy Japanese ships if quality and price differences are not there,” he says. “I prefer to put pressure on our Japanese partners and work with them to make sure they stay ahead. I think they can do it.”

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